On Sunday, Middle East stock markets opened as usual. Indexes in Qatar, Saudi Arabia and Kuwait rose slightly. Israel’s stock index hit a record high. However, cryptocurrencies showed concern. Ether dropped 5%, and its total loss since June 13 reached 13%. Analysts see Ether as a signal of retail investor fear.The US dollar may strengthen as a safe-haven asset. Analysts expect global investors to turn to the dollar in uncertain times. However, higher oil prices could raise inflation. This could weaken consumer spending and reduce chances of interest rate cuts. Some economists warn this may slow down the global economy further.

Market strategists said there is still no clear picture. Saul Kavonic from MST Marquee warned that Iran might respond by hitting US interests in the region. He said the Strait of Hormuz could be at risk. Jamie Cox from Harris Financial said oil prices may stabilize if Iran seeks peace talks.Past data show limited long-term market damage from similar conflicts. The S&P 500 fell slightly during the first weeks of tension in 2003 and 2019 but recovered within two months. This time, market recovery will depend on Iran’s actions and oil price movements.
Iran could attack US interests in the Middle East, especially oil facilities in Iraq or disrupt movement in the Strait of Hormuz.

Rising oil prices may raise transportation and energy costs, pushing up inflation and affecting consumer spending and interest rate decisions.